Product-Related Liabilities

3 Months Ended

Mar. 31, 2019

Product Warranties Disclosures [Abstract]

Product-Related Liabilities

10. PRODUCT-RELATED LIABILITIES

The Company has reserves for product risks. Such reserves are related to product performance issues including recalls, product liability and warranty issues. For further explanation, see Note 13. Contingent Liabilities below.

For the three month periods ended March 31, 2019 and March 31, 2018, provisions and cash paid primarily relate to recall and warranty related issues. The decrease in the reserve balance as of March 31, 2019 compared to the prior year was mainly due to cash payments. 

Pursuant to the Spin-Off Agreements, Autoliv is also required to indemnify Veoneer for recalls related to certain qualified Electronics products. At March 31, 2019, the indemnification liabilities are approximately $14 million within Accrued expenses on the Condensed Consolidated Balance Sheets. Insurance receivables are included within Other current assets and Investments and other non-current assets on the Condensed Consolidated Balance Sheets.

The table below summarizes the change in the balance sheet position of the product-related liabilities related to the continuing operations (dollars in millions).

	Three months ended
	March 31, 2019			March 31, 2018
Reserve at beginning of the period	$	62.2		$	95.6
Change in reserve		2.9			(1.4	)
Cash payments		(4.4	)		(14.5	)
Translation difference		(0.2	)		0.8
Reserve at end of the period	$	60.5		$	80.5